Chancellor warns of the ‘worst set of circumstances since the Second World War’ – London Business News | Londonlovesbusiness.com

The UK’s first female Chancellor has announced on Monday that the government will not increase VAT, national insurance or the basic higher or even the higher additional rates of income tax.

Rachel Reeves said that Labour will not renege on their tax promise and that “Britain is a place to do business.”

The Chancellor said, “Over the weekend, I made clear to Treasury officials that the manifesto commitments that we were elected on will be kept safe and they will be delivered on.

“That includes robust fiscal rules and it includes our commitments to no increases in national insurance and the basic higher or additional rates of income tax or VAT.

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Chancellor warns of ‘difficult choices’ amid the ‘mess left by our predecessors’

“To investors and businesses who spent 14 years doubting whether Britain is a safe place to invest. Then let me tell you, after 14 years, Britain has a stable government.

“A government that respects business, wants to partner with business and is open for business. In an uncertain world, Britain is a place to do business.”

Reeves said she has ordered an assessment of state spending to understand “the full extent of our challenge.”

The Chancellor added, “I have repeatedly warned that whoever won the general election would inherit the worst set of circumstances since the Second World War.

She said that Labour has, as suspected inherited “14 years of chaos and economic irresponsibility.”

Reeves added this means there will be “difficult decisions for this incoming Labour Government because of the mess left by our predecessors.”

Reeves said, “Had the UK grown at just the average rate of other advanced economies over the last 14 years, our economy would be over £130bn larger, which could have brought in an additional £58bn in tax revenues in the last year alone.

“That is money that could have helped revitalise our schools, our hospitals and other hard choices.”